Credit Suisse Maintains Digital Realty Trust (DLR) Underperform Recommendation

Fintel reports that on May 1, 2023, Credit Suisse maintained coverage of Digital Realty Trust (NYSE:DLR) with a Underperform recommendation.

Analyst Price Forecast Suggests 20.65% Upside

As of April 24, 2023, the average one-year price target for Digital Realty Trust is 119.62. The forecasts range from a low of 79.79 to a high of $183.75. The average price target represents an increase of 20.65% from its latest reported closing price of 99.15.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for Digital Realty Trust is 5,109MM, an increase of 5.48%. The projected annual non-GAAP EPS is 1.23.

Digital Realty Trust Declares $1.22 Dividend

On February 22, 2023 the company declared a regular quarterly dividend of $1.22 per share ($4.88 annualized). Shareholders of record as of March 15, 2023 received the payment on March 31, 2023. Previously, the company paid $1.22 per share.

At the current share price of $99.15 / share, the stock's dividend yield is 4.92%.

Looking back five years and taking a sample every week, the average dividend yield has been 3.54%, the lowest has been 2.65%, and the highest has been 5.44%. The standard deviation of yields is 0.56 (n=237).

The current dividend yield is 2.48 standard deviations above the historical average.

Additionally, the company's dividend payout ratio is 3.81. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company's 3-Year dividend growth rate is 0.09%, demonstrating that it has increased its dividend over time.

What is the Fund Sentiment?

There are 1719 funds or institutions reporting positions in Digital Realty Trust. This is an increase of 4 owner(s) or 0.23% in the last quarter. Average portfolio weight of all funds dedicated to DLR is 0.53%, an increase of 13.29%. Total shares owned by institutions increased in the last three months by 5.29% to 332,479K shares. The put/call ratio of DLR is 4.20, indicating a bearish outlook.

What are Other Shareholders Doing?

Cohen & Steers holds 28,222K shares representing 9.69% ownership of the company. In it's prior filing, the firm reported owning 21,480K shares, representing an increase of 23.89%. The firm increased its portfolio allocation in DLR by 31.07% over the last quarter.

VGSIX - Vanguard Real Estate Index Fund Investor Shares holds 12,193K shares representing 4.19% ownership of the company. In it's prior filing, the firm reported owning 12,283K shares, representing a decrease of 0.74%. The firm increased its portfolio allocation in DLR by 3.95% over the last quarter.

APG Asset Management US holds 9,995K shares representing 3.43% ownership of the company. In it's prior filing, the firm reported owning 10,077K shares, representing a decrease of 0.82%. The firm decreased its portfolio allocation in DLR by 0.68% over the last quarter.

VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 8,737K shares representing 3.00% ownership of the company. In it's prior filing, the firm reported owning 8,569K shares, representing an increase of 1.92%. The firm decreased its portfolio allocation in DLR by 4.81% over the last quarter.

Principal Financial Group holds 6,994K shares representing 2.40% ownership of the company. In it's prior filing, the firm reported owning 3,022K shares, representing an increase of 56.80%. The firm increased its portfolio allocation in DLR by 121.71% over the last quarter.

Digital Realty Trust Background Information
(This description is provided by the company.)

Digital Realty supports the world's leading enterprises and service providers by delivering the full spectrum of data center, colocation and interconnection solutions. PlatformDIGITAL®, the company's global data center platform, provides customers a trusted foundation and proven Pervasive Datacenter Architecture (PDx™) solution methodology for scaling digital business and efficiently managing data gravity challenges. Digital Realty's global data center footprint gives customers access to the connected communities that matter to them with more than 290 facilities in 49 metros across 24 countries on six continents.

This story originally appeared on Fintel.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.